Jakarta – Publish What You Pay (PWYP) Indonesia held another PWYP Knowledge Forum (PKF), a regular discussion and knowledge-sharing platform organized by the PWYP Indonesia coalition. The forum aims to enhance understanding and capacity while fostering public discourse on issues, topics, and policies related to the energy and natural resources sector.
This PKF session revisited the urgency of imposing a moratorium on mineral and coal mining permits in Indonesia. The event was held in a hybrid format on May 28, 2025, in South Jakarta.
Moderated by Ufudin from the KoMIU Foundation in Central Sulawesi, the forum featured two key speakers: Ibrahim Zuhdhi (Fahmy) Badoh, Director of Mining and Energy at Auriga Nusantara, and Haris Retno Susmiyati, a mining law lecturer and academic from Mulawarman University.
Fahmy noted that as of November 2024, there were 4,634 mining concessions, including 4,302 Mining Business Permits (IUP) covering 9,112,732 hectares, 31 Contract of Work (KK) agreements spanning 1,161,796 hectares, 59 Coal Mining Concession Agreements (PKP2B) covering 1,171,702 hectares, 48 Community Mining Permits (IPR) covering 50.41 hectares, and 10 Special Mining Business Permits (IUPK) spanning 255,199 hectares.
Mining is a major contributor to deforestation. From 2000 to 2023, mining activities caused 750,000 hectares of deforestation, affecting both primary and secondary forests. On average, 6,500 hectares of primary forest were lost annually during this period, with the highest loss in 2013—coinciding with the pre-election period—reaching 10,000 hectares.
Between 2021 and 2023, coal mining was the leading cause of deforestation, accounting for 322,000 hectares, followed by gold mining (149,000 hectares), tin (87,000 hectares), nickel (56,000 hectares), bauxite (16,000 hectares), and other minerals (91,000 hectares).
Fahmy, as well as a member of PWYP Indonesia’s Steering Committee, highlighted that Indonesia, one of the world’s largest coal producers with an export-oriented focus, faces significant challenges amid weakening global demand and declining commodity prices. Coal extraction in Indonesia is massive—nearly three times the domestic demand—potentially depleting reserves 4.7 times faster than the current estimated reserve lifespan of 43.93 years.
Global energy trends show declining coal import demand due to increased coal extraction in major importing countries and reduced reliance on thermal coal for power plants, driven by energy diversification toward renewables and efforts to cut coal emissions.
Given these environmental and economic realities, Fahmy argued that a moratorium on mining permits is critical. “Falling coal prices, weak global demand, and depleting reserves should be a catalyst for a moratorium on mining permits and coal exports,” he said.
Alongside the moratorium, Fahmy emphasized the need for economic transformation to reduce reliance on mining revenue while supporting energy transitions to address climate change and carbon emissions. “Indonesia should take strategic steps amid declining coal prices, including a moratorium on coal mining permits and coal export permits,” he added.
Moratorium or Complete Halt to Permits?
Haris Retno offered a different perspective, arguing that Indonesia’s urgency lies not in a moratorium but in a complete halt to new mining permits. She cited several reasons, including environmental damage caused by mining and the unsustainable nature of the mining industry as an economic foundation. Relying on mining, she argued, equates to depending on a fragile economic resource. Moreover, mining does not guarantee prosperity for local communities.
In East Kalimantan, for example, coal mining threatens food security due to the conversion of agricultural land into mining areas. Women are disproportionately affected, with Haris noting the impoverishment of women in mining regions. Only 1.2% of women are employed in the mining industry, and in East Kalimantan, just 6.7% of the workforce is engaged in mining. These benefits pale in comparison to the environmental damage and loss of agricultural land.
Haris highlighted Samarinda, which faces constant flood risks due to extensive land clearing for coal mining in and around the provincial capital. Additionally, the revenue-sharing model between mining companies and the government is imbalanced, and compliance with post-mining reclamation requirements is low.
“A moratorium, or even a complete halt to permits, is necessary for the collective well-being, fulfilling the constitutional mandate to maximize public welfare,” Haris stated. However, she noted that the government’s political will does not align with public safety priorities. “State control over natural resources should prioritize prosperity. If that’s not achieved, there must be a reevaluation,” she asserted. (AK/AN)